What is a CASC?
Community Amateur Sports Clubs (CASCs) are amateur sports clubs that are registered with HM Revenue & Customs (HMRC). The CASC scheme exists in order to distinguish between amateur sports clubs in the community and businesses to help ensure that sports clubs are treated fairly and benefit from a range of tax reliefs and that money stays within sport. The average cash benefit to clubs registered under the CASC scheme is £4,000 per year.
Similar benefits might also be available to you if you register as a charity although most cricket clubs have chosen CASC status – see here for a full comparison of CASC and charity status for clubs.
How does your club benefit?
On becoming a CASC, your club will benefit from the following:
- 80% mandatory business rate relief
- The use of Gift Aid and the Gift Aid Small Donations scheme (see below)
- Exemption from corporation tax on trading profits if your trading income is below £50,000 per year, and on property income if it is below £30,000 per year
- Companies can receive corporation tax relief on donations to CASCs
Criteria for becoming a CASC in England and Wales
- Your sport must be recognised by the Sports Councils, e.g Sport England and Sport Wales
- Your club must have an open membership policy
- Cost of participation must be affordable at less than £520 per year. If not, provision must be made for those who can’t afford it
- Your club must promote and provide facilities for amateur sports participation
- More than 50% of members must participate fully in the sport
- Your club must not exceed the non-member income limit of £100,000. Larger clubs which exceed this limit need to set up a trading subsidiary to be a CASC
- Your club must be non-profit making – any profits must be reinvested into the club
- In the event your club is wound up, your constitution must state that any remaining assets be distributed for use broadly in community sport or to another CASC
- The club must be managed by fit and proper persons
Applying to become a CASC
If your club wishes to become a CASC, you will need to complete an application form via GOV.UK and return it to HMRC along with a copy of your club constitution and other documents which must adhere to the criteria set out above. Please see here for further details on applying for CASC status.
Gift Aid
By becoming a CASC you will be eligible to claim Gift Aid on individual donations to your club in the same way as for charities. CASC membership fees and subscriptions do not qualify as donations.
Gift Aid works by providing income tax relief to individuals who provide a donation to your club at the same time as allowing the club to claim income tax on the donation from HMRC. Your club will receive £25 for every £100 donated by anyone who pays income tax. If an individual is a 40% higher rate taxpayer, they will also be refunded £25 for every £100 they donate to a CASC.
Gift Aid small donations
If your CASC is claiming Gift Aid successfully it can also use the Gift Aid Small Donations scheme (GASDS) to claim back 25p in £1 on small cash donations to the CASC but without the paperwork required when claiming Gift Aid. Visit the dedicated CASC site for further help and info on Gift Aid and GASDS.
Online giving
Online giving providers – for example, BT MyDonate, Virgin Money Giving and JustGiving – allow you to collect donations in a simple and easy-to-manage way by setting up a fundraising page for members and supporters to give online. It costs you absolutely nothing but different providers charge varying fees.
These websites are set up to manage Gift Aid on donations. The provider does all the work to enable you to receive tax refunds from HMRC, who will check the provider’s Gift Aid procedures rather than yours.
Setting up an online giving page for your cricket club will allow you to properly communicate why you are fundraising. You will also be given helpful tips on the best way to tell people about your page.
Rate relief
Local authorities will automatically give your club 80% rate relief when you register; this is mandatory. If they are already providing discretionary rate relief (DRR), they can top up your mandatory relief by 20% so that you pay nothing.
Further information
For further CASC-related information, please visit www.cascinfo.co.uk, download the HMRC CASC guidance notes or email clubsupport@ecb.co.uk.